Stanford study: The IRS audits Black taxpayers at a higher rate than others. It finds Black taxpayers are audited 2.9 to 4.7 times more than non-Black taxpayers, perhaps because of the computer algorithms the IRS uses for audit selection. The largest disparity between the groups was among those claiming the Earned Income Tax Credit.
IRS surprises foreign investors with real estate investment trusts. TaxNotes reports (paywall) proposed IRS regulations would curb a common way real estate investment trusts (REITs) attract foreign investors. The practice relies on "foreign-owned" domestic corporations to invest in a domestic or DC REIT.
New ways to help low-income families file their taxes. TPC’s Kim Rueben, Luisa Godinez-Puig, and Nikhita Airi dive into their research findings on ways to assist new mothers, families with low incomes, and immigrant parents. These strategies include using trusted messengers such as nurses to steer new and expectant mothers to free tax filing assistance.
Biden’s budget due out on March 9. It will be DOA in the GOP-controlled House, of course. But it will give the president a chance to contrast his budget with a House Republican fiscal plan.
Report: Nearly 70,000 questionable Social Security numbers were used to get pandemic-related federal loans. An analysis of 33 million applications for COVID-19 Paycheck Protection Program assistance found 221,000 used Social Security numbers that either were fake or did not match the applicants’ names or dates of birth. Most were flagged for potential fraud, but the federal government awarded loans or grants to 70,000 applicants with questionable Social Security numbers.
Kansas Chamber of Commerce proposes a pricey flat tax. Currently, Kansas individual income tax rates range from 3.1 percent for income up to $30,000 to 5.7 percent for income in excess of $60,000. The lobbying group wants a flat 5 percent tax on all income over $15,000. The bill would gradually reduce the 5 percent rate if revenues are higher than estimated. It would lower revenue by $428 million in its first year, $1.45 billion in the second year, and $1.51 billion in its third year. The state surplus currently is $2.3 billion.
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